Our relationship with LCH.Clearnet and Euroclear UK and Ireland ensure that trades in UK and Irish securities are cleared and settled quickly and cost effectively. The process allows members to take advantage of the efficiency and cost benefits provided by a Central Counterparty (CCP) and settlement netting.
The CCP for the Exchange's electronic order book, SETS, was introduced in February 2001, in conjunction with CRESTCo (now Euroclear UK and Ireland) and the London Clearing House (now LCH.Clearnet Ltd).
The CCP service was enhanced on 1 July 2002 to include optional settlement netting. This allowed participants to have just one net settlement per security per day with LCH.Clearnet Ltd, irrespective of the number of trades they had dealt on SETS.